The merger of two companies in the same industry that make products required at different stages of the production cycle is called:
A)economies of scope.
B)vertical integration.
C)economies of scale.
D)horizontal integration.

Question

Quizplus · Accepted Answer

The merger of two companies in the same industry that make products required at different stages of the production cycle is called vertical integration. This means that one company acquires another company that is either its supplier or its customer. This allows the newly merged entity to control more aspects of the supply chain and potentially reduce costs and increase efficiency.

The Merger of Two Companies in the Same Industry That